The size of my Hotmail email box has been increased to 250M as a free service promotion. The Yahoo! Mail offers 100M email storage for free. Maybe both Microsoft and Yahoo have felt the pressure from Gmail that offers 1G free storage space powered by Google. The competition had caused some pain for Hotmail.
The philosophy represented by Gmail is that the users need to SEARCH their emails but not to organize them from time to time. Gmail is still at Beta version, and let’s see the new features that Google will implement.